California Foreclosure Refund Program, Part of the Attorney General Settlement

Posted on October 1, 2012 by CustomerBullHorn

By JoAnn Parrott, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC.

Today’s Post is about the Foreclosure Refund Program, part of the national Attorneys General Mortgage Settlement.

What is the Foreclosure Refund Settlement program?
The foreclosure refund program is one of three parts of the national attorneys general settlement with the five largest banks. As part of this $25 billion settlement, approximately $1.5 billion has been earmarked for the foreclosure refunds. The five banks (Chase, Ally/GMAC, Bank of America/Countrywide, Citibank, and Wells Fargo/Wachovia) agreed to compensate homeowners who lost their homes to foreclosure inappropriately between January 1, 2008 and December 31, 2011.

The remaining money is being used to provide up to $3 billion (nationally) in refinancing for homeowners who are underwater. In addition, up to $17 billion is being used for modifications (including principal reductions), short sales, and monetary assistance for homeowners who are transitioning out of their homes.

Is my lender part of the Settlement program? The participating lenders are Ally/GMAC (800-766-4622), Bank of America/Countrywide (877-488-7814), Citibank (866-272-4749), JPMorgan Chase (866-372-6901) and Wells Fargo/Wachovia (800-288-3212).

Am I eligible to apply? YES – Regardless of the circumstances you are currently experiencing or have experienced in the past, if your lender is participating in the program, you can apply.

How do I apply? For the foreclosure refund program, you may receive a claim form as well as general information regarding the program from the National Settlement Administrator. Kamala D Harris, California’s Attorney General, explained in a press release that letters are being mailed directly to 432,584 California homeowners between September 24 and October 12, 2012 about the foreclosure refund. If you believe that you are eligible for the foreclosure refund but did not receive a form, you can call the National Mortgage Settlement Administrator at 1-866-430-8358, Monday through Friday 7:00 a.m. – 7:00 p.m. Central Time.

Once you receive the letter in the mail, you will need to complete the form and mail it back, or you can also fill it out online (but you’ll need the claim number from the letter you received, so don’t throw it away). More instructions are on the National Mortgage Settlement website.

For the other two parts of the settlement (refinancing and loan modifications), you can contact your lender directly to ask about your eligibility and the bank’s timeline for implementing these options.

How long do I have to apply? The deadline for submitting a claim for the foreclosure refund is January 18, 2013.

What if I don’t get a letter? If you don’t receive a letter by October 31, 2012 or if you have a different address now, contact the National Settlement Administrator at 866-430-8358 (M- F from 5am-5pm PST) or send an e-mail with your current mailing address to administrator@nationalmortgagesettlement.com.

Do I need to hire somebody to help me apply? NO – The claim form is easy to complete. If you have questions, call 1-866-430-8358 (M-F from 5am-5pm PST) for help or send questions via email to: administrator@nationalmortgagesettlement.com.

What if I’m contacted by an agency that wants to help me? Be aware of possible settlement-related scams. Do not provide personal or financial information or pay money to anyone who claims to provide settlement-related assistance. If you believe someone is conducting a scam, contact the Attorney General’s Public Inquiry Unit at http://oag.ca.gov/consumers/general.

What do I have to prove with my claim? Once you are qualified, you do not need to prove financial harm to receive a payment nor do you give up your right to pursue legal action against the lender.

If you want, you can also apply for the Independent Foreclosure Review Process. It is a settlement with other regulators and 14 banks and servicers based on robo-signing issues that occurred between January 1, 2009 and December 31, 2010. The Independent Foreclosure Review deadline is soon: December 31, 2012. More information on this program is available at our blog post about the Independent Foreclosure Review (scroll down to the bottom of the post) or on the Independent Foreclosure Review website.

How much money will I get? The amount of your refund depends on the total number of homeowners who decide to participate. The estimated number of participants nationally is approximately 2 million people.

When will I get my money if I am eligible? Payment checks are expected to be mailed to eligible participants in mid-2013.

What if I still own my property but need help paying the mortgage? Contact your lender or a HUD-approved counseling agency to discuss your options. To locate a HUD agency, call 800-569-4287.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Joseand the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org. Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Free Foreclosure Resource Fair: October 20th at Overfelt High School

Posted on September 27, 2012 by CustomerBullHorn

By Sean Coffey, MPA, Program Manager at ForeclosureHelpSCC

Do you live in Santa Clara County? Are you struggling to make your mortgage payments? Has your income gone down? Would you like to speak with somebody who knows about the mortgage programs and settlements and can give you honest advice?

If you would like to get all of this information in one place, then you should come to a free Foreclosure Resource Fair here in San Jose on October 20th, from 9am to 3pm at Overfelt High School.

At the fair, you can meet one-on-one with a HUD certified Foreclosure Counselor who knows the system. They can help you find solutions and develop a plan forward. You will learn about which programs can help you, and scams that can hurt you.

Tax and legal experts at the event will give presentations and we’ll also have a free shredding truck for you to safely shred your old documents.

Assemblymember Jim Beall, who represents the 24th District for California, will also speak about recent legislation to address the foreclosure crisis here in California. His office is helping to organize the event, and Assemblymember Beall explains, “In this tough economy, many families are living from paycheck to paycheck, struggling to meet their mortgage. Homeowners facing default who attend the foreclosure prevention fair can get effective counseling and learn how new laws passed by the Legislature can protect them.’’

Jeffrey F. Rosen,the District Attorney for Santa Clara County states “Real estate fraud, and particularly foreclosure rescue scams have a devastating impact in our communities. We are proud to partner with ForeclosureHelpSCC and other non-profits to protect homeowners from real estate fraud, and hold con artists accountable for their misdeeds.”

Dr. John Porter, the Superintendent of Franklin McKinley School District and its Children’s Initiative,explained the impact of foreclosures on children and neighborhoods: “I have seen how the stress and disruption of foreclosure hinders a child’s performance in school and affects their classmates. And foreclosures take their toll on the whole neighborhood with the lack of income and resource that make children feel less safe and secure.”

Time and space with a housing counselor is limited, so if you would like to meet with a counselor, please call ahead of time to RSVP. You can call (408) 293-6000 to reserve your space.

WHEN: Saturday October 20, from 9 a.m. to 3 p.m.

WHERE: Overfelt High School, 1835 Cunningham Ave., San Jose, CA.

WHO: ForeclosureHelpSCC is a consortium of non-profits serving the community and led by the Housing Trust of Santa Clara County with Asian, Inc., Law Foundation of Silicon Valley, Neighborhood Housing Services, Project Sentinel, SurePath, and volunteers from Santa Clara County Association of Realtors, funded by the cities of San Jose and Sunnyvale. Other non-profits and banks will be there to offer information

WHY: In July more than 1,000 families in Santa Clara County were impacted by a foreclosure proceeding, per Realty Trac. The foreclosure crisis may have passed its peak but a statewide study by the Center for Responsible Lending found, “Over 50% of existing single-family homes sold in California in 2011 were short sales or bank-owned foreclosures. ‘Lost Ground, 2011‘ found we are only about halfway through the foreclosure crisis.”

MORE INFORMATION: Please call the ForeclosureHelpSCC office: 408-293-6000, visit our website for the foreclosure resource fair, or email us: sean@housingtrustscc.org.

Rebuilding credit after a Foreclosure or Short Sale

Posted on September 7, 2012 by CustomerBullHorn

By Aurora Olivares, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC

Building and maintaining credit is frequently on the minds of homeowners here in San Jose and Sunnyvale. It’s no secret that your credit takes a hard hit during and after a foreclosure or short-sale. Once you are more than 30 days late on your mortgage, it will be reported on your credit report, and your credit score will be impacted negatively. To learn more about how a foreclosure, a short sale without a deficiency, a short sale with a deficiency, and a bankruptcy impact three typical homeowners, read the FICO Banking Analytics blog posting: “Research looks at how mortgage delinquencies affect scores.”

As homeowners are unable to pay their mortgage or secure a workout with their lenders, they may fall further behind on their payments, and their credit report will worsen. A homeowner’s credit is impacted throughout this progression until the entire delinquency is resolved.

Let’s fast forward. What happens after someone goes through the foreclosure process?

The foreclosure proceedings are reported to the credit bureau by your lender and will be noted on your credit report for the next 7 to 10 years. However, this doesn’t mean that you can’t re-build your credit after a foreclosure or short sale and become a homeowner again.

Here are 5 tips on how to rebuild your credit so you can prepare yourself if you decide to purchase a home in the future or need to apply for other types of credit after going through the foreclosure process.

Pay your debts on time. Paying your minimum monthly payment on time will reflect positively on your credit report.

Keep low balances on your credit cards. If you have a credit card with a revolving balance, try to keep the balance at about 30% or less of the overall credit limit for that account. For example, if your credit limit is $10,000, you should try to keep your balance below $3,000.

Pay more than your minimum monthly payment. By simply paying $1 more per month than your required minimum payment, it will register positively on your credit score. It could be $1 or $100 more than minimum amount you are being billed. Use this method to maximize your ability to pay off debt faster and start to rebuild your credit.

Keep your older credit accounts open. The longevity of an account plays a role on how your credit score is calculated because potential lenders like to see that you have a history of using credit and paying your bills. Therefore, if you close an older account, it’s going to negatively impact your credit score. If you need to close credit accounts, consider eliminating newer accounts first.

Avoid quick–fix schemes. Claims to be able to fix your credit in less than 90 days may not be the most dependable outlets. If it sounds too good to be true, it probably is. If you decide to seek professional assistance to help resolve your credit issues, make sure they are a reputable organization. One quick way to research if an organization is providing legitimate credit counseling assistance is to see if they belong to the National Foundation for Credit Counseling, a nonprofit, membership organization which holds its member agencies to high standards. Visit their website: www.nfcc.org to learn more or to find a credit counseling agency close to you.

In conclusion, rebuilding your credit report and score after a foreclosure or short sale will take time and dedication and there are no “quick fix” schemes to fix your credit.

If you haven’t already, you may want to obtain your free credit report. And a reminder from the Federal Trade Commission: AnnualCreditReport.com is the ONLY authorized source for the free annual credit report that’s yours by law. The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies — Experian, Equifax, and TransUnion — every 12 months.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website www.foreclosurehelpscc.org. Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Nancy’s Nine Rules for an Effective Relationship With Your Housing Counselor

Posted on August 20, 2012 by CustomerBullHorn

By Nancy Rueda, Housing Counselor at Asian Inc., one of the members of ForeclosureHelpSCC

Trying to find assistance during a difficult time with your mortgage may be overwhelming, but there are trained housing counselors who can help you learn about your options so that you can make an informed decision. Today I’m sharing a few tips that will help you get the most out of your time with your housing counselor.

1) Take notes – At a housing counseling appointment you will learn a lot of new information about mortgage assistance programs, and what your options are if you are having trouble paying your mortgage. As part of your appointment, we will also give you a handout that explains the foreclosure timeline and process in California. It can be really helpful to take notes so that you have something to refer back to after your appointment.

2) Bring questions to the appointment: Before meeting with your housing counselor, write your questions and bring them to your appointment. That way you won’t forget any important questions or concerns you have about your mortgage.

3) Arrive on time: Housing counselors are assisting a number of homeowners at any given time. By being on time, you can ensure that you get the full time allotted for your appointment with your housing counselor.

4) Share all important information with your housing counselor. There are two really important reasons for you to make sure you’re sharing all relevant information with your housing counselor. First, similar to a doctor making a diagnosis, a housing counselor needs all information about your mortgage, financial, and income situation so that they can do a thorough analysis and make sure you’re informed about all options available to help you. If you only provide them with half the information, then you may miss out on learning about all of your mortgage options. Second, if your housing counselor is advocating on your behalf with your bank or servicer, they need to be operating with the same information that the bank or servicer has in order to be an effective advocate for you.

5) Awareness: While friends and family members may have received a loan modification, each mortgage situation is different. The banks and servicers (and in some cases, an investor who may or may not approve of a modification) all have different programs and policies. This could mean that the same bank provides two very different modifications for two houses on the same street. Or, because of investors, the bank may be allowed to modify one mortgage, but not the other.

6) Documents, documents, documents: If you are submitting a request for a loan modification, you will be asked to provide a lot of documents to your housing counselor. Housing counselors can’t submit incomplete packages to the bank or servicer. By providing all of the documents at one time, you can make your case go smoother and it will be easier for your housing counselor to submit a package to the bank. If a housing counselor has to wait on documents, it can slow them down in submitting a package to your bank or servicer. In addition, during the time your housing counselor is waiting for “late” documents, the documents you already submitted may become out of date, and you will have to submit new ones.

7) Follow up with your servicer – After your housing counselor informs you that your workout packet has been submitted to your servicer, follow up with your servicer. Do not wait for your housing counselor to remind you. It’s suggested that you follow up with them every week and make sure to write down what was discussed, the date, time, the name of the person you spoke with and their ID number on your note book. If you are giving information to the bank or servicer, it should match the information that your housing counselor submitted in the package. If circumstances change (i.e. you get an increase or decrease in pay), let your housing counselor know.

8) Keep your housing counselor updated – There will be times when your bank or servicer will contact you directly and may request additional information from you. Don’t forget to contact your housing counselor and inform them of what was discussed or what was requested from you. If you had to fax documents to your servicer, send them to your housing counselor as well, that way they are aware of what was provided to your servicer.

9) Be patient, polite and proactive – As overwhelming as this process is, housing counselors are here to assist you in learning about your options, which may include a short sale, modification, or in some cases, letting go of the home and planning a successful “exit strategy.” Regardless of which path you decide to take, it’s a “team approach” and your active participation is important. Being patient, polite, and proactive will also be helpful in communicating with your bank or servicer, since you may have to be the messenger between different departments at your bank or servicer.

Have you worked with a housing counselor before? Do you have any comments or tips you would like to share?

New Mortgage Servicing Rules Proposed- What Does it Mean for You? Part 2 of 2

Posted on August 16, 2012 by CustomerBullHorn

By Sean Coffey, Program Manager at ForeclosureHelpSCC

In an earlier post, we explained that the Consumer Financial Protection Bureau announced proposed rules around loan servicing and we examined the first part of this proposal. In today’s post, we’ll examine the second part of the proposed loan servicing rules. The rules are nicknamed the “no runaround” rules, and address loan servicing issues that homeowners sometimes encounter with their mortgage loan servicers.

Under the new rules, banks or servicers will have to:

Credit a consumer’s account on the same date that the servicer received the payment.
Maintain accurate and accessible documents to minimize errors, provide oversight of any contractors and of any foreclosure attorneys working on behalf of the servicer.
If a homeowner notifies a servicer that they believe a mistake has been made, then the servicer would need to provide acknowledgement of the homeowner’s complaint, conduct an investigation, and respond to the homeowner in a timely manner.
Provide direct and ongoing access to servicer employees who have the power to assist homeowners.
Promptly review applications for programs that help avoid foreclosure.
Wait until after a review of an application is complete before moving forward on a foreclosure sale.
Inform homeowners when their packages are incomplete.
Allow homeowners to appeal certain servicer decisions.

Some of these proposed rules are similar to laws that are already on the books, for example the Real Estate Settlement Procedures Act also requires banks and services to respond to homeowner’s request in a timely manner.

We have heard from several homeowners that the servicing of their loan has been transferred and in the process of transferring, the loan payments made to the first servicer aren’t being credited with the new servicer.

If this has happened to you, you may want to consider sending a qualified written request, also known as a “RESPA Request.” RESPA stands for Real Estate Settlement Procedures Act. Under this act, a borrower can send a letter to their lender if there is a dispute about payments or other issues related to the loan, and their servicer is required to acknowledge the request within 20 business days and must try to resolve the issue within 60 business days.

If you do send a qualified written request, it’s important that you include this sentence at the beginning of your letter:

This is a “qualified written request” pursuant to the Real Estate Settlement and Procedures Act (section 2605(e)).

And include this sentence at the end of the letter:

I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.

You should send your letter through registered mail so that you have proof that your bank or servicer received it. You can see an example of a qualified written request on the HUD website: Example Qualified Written Request.

If you would like to learn more about the proposed rules, visit the “Regulation Room” and see how the proposed rules would affect real-life situations. You can also provides comments on any loan servicing issues you’ve had, or on the proposed legislation.
Have you encountered any loan servicing issues with your mortgage? Any suggestions you would give to the Consumer Financial Protection Bureau as they consider implementing these rules?

Maggie’s Five Rules for Working with Your Bank or Servicer

Posted on August 10, 2012 by CustomerBullHorn

By Maggie McCarthy, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC.

1.Calling Your Bank or Servicer: When you call your bank or servicer, always be prepared with information the lender may ask from you. They will probably ask for your:

Loan Information; loan number, mortgage payment amount, property taxes, insurance.
The servicer or bank will also ask about your income, both gross- (before taxes), and net (after taxes).
The servicer or bank will also want to know about your other household expenses, including utilities, food, transportation, insurance, credit card payments, and any other debt payments that you have to make (for example, car loans, school loans).

2. Hardship: When discussing your hardship with your lender, be clear and to the point. They want to know the cause of your hardship, any actions you may have taken to help yourself (for example, cut out cable or reduced other bills), and what kind of help you are looking for from your lender. For example, if you were unemployed for three months but now have a new job (and can pay your mortgage), then you could ask them to add the past due amount to the balance of your mortgage.

3. Documents: If you are seeking a modification, remember that you are essentially asking them to write a whole new loan. While modifications can take time, there are some steps you can take to make the process go faster:

Provide all documentation requested;
Double-check that you have completed and signed all forms that they are requiring;
Make sure all of your supporting documents are up to date. You may have to update some documents like your pay-stubs every month.
If you write the loan number on every page of any documents that you are sending to the bank or servicer, it reduces the chance your documents will get lost.

4. Follow-Up: Once you submit all of the documents, follow up with your lender every week to 10 days on status of your request, that also shows that you are very interested in resolving the problem. Start a notebook, and make sure you write the name and ID number of the person you talk to each time, and what you discussed. While this can be a frustrating process, the bank person may be able to help you, so be nice to them, and you may even try and make friends with them. You never know how much power they have to help move your case forward.

5. Other Options: There are other options and programs available to resolve your housing problem, so ask your lender for other options available if you do not qualify for a loan modification. Always ask questions and never agree to anything that you don’t understand or sign any documents that you don’t understand. If you are being offered something, ask if they can put it in writing.

Do you have any tips you have found helpful based on working with your bank or servicer?

Remember: You don’t have to go through this process alone. If you have questions, give ForeclosureHelpSCC a phone call and we can set up an appointment to meet with you: 408-293-6000.

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